Jain Irrigation

The company ended Q2FY15 on a flat note with a 4% (YoY) rise in consolidated net sales at Rs.1253 crore and net loss at Rs.23 crore v/s loss of Rs.81 crore in previous Q2. The company managed to keep a tight leash on costs but huge interest outgo of Rs.115 crore did it in – this was the exact same story in previous Q2 also. Its consolidated net debt stands currently at Rs.4240 crore and 40% is in forex currency.

In terms of segment wise growth, micro-irrigation led the growth with a rise of 21.4% growth in revenue followed by onion dehydration which grew 21.8%. The rest of the segments showed a de-growth – pipe by 25.3%, PVC sheets by 13.6%, Fruit processing by 14.9% and Solar business by 17.7%. Its inventory stands at 121days and gross Account Receivables is at 115 days and the net working capital is at 158 days, which has risen from 145 days in Q1 but lower than 174 days in previous Q2. The company will now incorporate a wholly-owned subsidiary for its existing global food processing business. In the coming quarters, the company is expected to do much better as the busy season revenue mix comes in and crude prices getting stabilized. The company has maintained its medium-term target of reaching a debt equity level of 1:1 by fiscal 2016.